The strategy of ________ involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.
A) cost leadership
B) related diversification
C) vertical integration
D) market penetration

Question

Quizplus · Accepted Answer

Related diversification involves entering a new domain using existing core competencies. This allows for the creation of a competitive advantage, either through cost leadership (using existing cost advantages to offer products/services at a lower price) or differentiation (using existing expertise to offer unique products/services). Vertical integration involves expanding into new stages of the value chain, while market penetration refers to expanding within the current market through increased marketing and sales efforts.

The Strategy of ________ Involves an Organization Entering a New